German business morale slips slightly in October, beating expectations

BERLIN, Oct 25 (Reuters) – German business morale dipped slightly in October but was still better than analysts had expected, as business morale fell despite a drop in business satisfaction with current operations, a survey showed on Tuesday. But business expectations have improved.

The Ifo Institute said its business climate index stood at 84.3, compared with a reading of 84.4 in September. A Reuters poll of analysts showed a reading of 83.3 in October.

The survey’s index of expectations edged up to 75.6 from 75.3 the previous month, the first rise since May.

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“Their expectations have improved, but they are still worried about the coming months. The German economy is facing a difficult winter,” said Ifo president Clemens Fuest.

The German government expects Europe’s largest economy to slip into recession next year as the energy crisis, rising prices and supply bottlenecks take their toll.

Ahead of the statistics office’s release on Friday, experts polled by Reuters expected German economic output to fall by 0.2 percent in the third quarter from the previous quarter.

Ifo forecasts Germany will contract by 0.6% in the fourth quarter.

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Reporting by Miranda Murray and Rachel More, Editing by Kirsti Knolle

Our Standard: The Thomson Reuters Trust Principles.

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